An insurance company wants to charge a higher premium to drivers of red cars because the company believes that they get more speeding tickets. A research company collected the following data to investigate their claim. Use the data below to decide if the insurance company should be charging a higher premium to drivers of red cars. Homework Help ✎
Total: 20,000 cars with 507 speeding tickets
Red Cars: 348 red cars with 9 speeding tickets
Find the probability of getting a ticket and the probability of getting a ticket while driving a red car.
Then use the probabilities to determine whether a driver of a red car is more or less likely to get a ticket than a random driver.